Smart city construction and green technology innovation: evidence at China's city level

In the context of China's economic and social transformation, smart cities are becoming increasingly important for green development. Based on pilot smart cities and panel data from 274 prefecture-level cities in China from 2006 to 2018, this paper mainly evaluates the impact of smart city construction (SCC) on green technology innovation (GTI). To analyze SCC mechanisms and heterogeneity, we used China's smart city pilots as a quasi-natural experiment. In terms of the influencing mechanism, SCC can promote GTI by enhancing the digital economy level. Meanwhile, the optimization allocation of resources, including labor, land, and capital, can effectively foster the promoting effect of SCC on GTI. Moreover, SCC has a spatial diffusion effect; it will not only promote local GTI, but also improve the level of GTI in neighboring cities. In terms of the heterogeneity analysis, smart cities, which present a large scales, rich human capital, and high-level infrastructure, have a strongly positive effect on GTI. This study provides important empirical evidence for the development of SCC and GTI.